Correlation Between Guangzhou Tinci and Gansu Huangtai
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Guangzhou Tinci and Gansu Huangtai and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guangzhou Tinci with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Gansu Huangtai.
Diversification Opportunities for Guangzhou Tinci and Gansu Huangtai
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Gansu is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Guangzhou Tinci is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guangzhou Tinci Materials are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Gansu Huangtai
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Gansu Huangtai. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Tinci Materials is 1.09 times less risky than Gansu Huangtai. The stock trades about -0.05 of its potential returns per unit of risk. The Gansu Huangtai Wine marketing is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,905 in Gansu Huangtai Wine marketing on October 16, 2024 and sell it today you would lose (294.00) from holding Gansu Huangtai Wine marketing or give up 15.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Gansu Huangtai Wine |
Guangzhou Tinci and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Gansu Huangtai
The main advantage of trading using opposite Guangzhou Tinci and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Gansu Huangtai can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Shandong Gold Mining |
| Gansu Huangtai vs. Wonders Information | Gansu Huangtai vs. Shanghai Phichem Material | Gansu Huangtai vs. Qiming Information Technology | Gansu Huangtai vs. Guangzhou Tinci Materials |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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